Heather Humphreys (Cavan-Monaghan, Fine Gael) | Oireachtas source

I thank the Deputy for raising this matter.

Ireland is a competitive economy, as reflected in a range of economic metrics such as high economic growth, the strong performance of the labour market across sectors and regions, strong trade figures and productivity figures. For example, the results from the Labour Force Survey show there was a 2.3% increase in employment in the year to quarter 4 2018, bringing total employment to 2,281,300, the highest number on record. In quarter 4 2018, there were 128,800 people unemployed, a decrease of 10.5% compared to the previous year. However, this strong competitiveness position cannot be taken for granted. There is no room for complacency. Improving Ireland’s competitiveness position is a key priority for this Government and my Department.

The National Competitiveness Council report, Cost of Doing Business in Ireland 2019, found that while Ireland is a high cost economy - the fifth most expensive in the EU - the cost base for enterprise is internationally competitive across a range of metrics, including, for example, the cost of starting a business, communications costs and average income taxes. However, the council noted that cost pressures are evident in some areas, including the labour market, credit, business services and residential property.

Future Jobs Ireland 2019, launched in March, is a whole of Government framework designed to improve our economy’s resilience in the face of emerging and future challenges. It sets out 26 ambitions to 2025 across five pillars in the areas of innovation, productivity, skills and talent, participation and transitioning to a low carbon economy. Along with Project Ireland 2040, Global Ireland 2025 and the Government’s forthcoming All of Government Climate Plan, Future Jobs Ireland 2019 represents an integrated approach to prepare for the opportunities and challenge of the future economy.

A range of specific deliverables in Future Jobs Ireland 2019 aim to enhance the business environment and improve competitiveness, as well as other factors, that contribute to specific sectoral cost challenges. For example, on credit and financial costs, the future growth loan scheme will provide long-term debt financing for strategic investments at competitive rates in a post-Brexit environment; on legal services, new business models for legal services will be introduced, including new legal partnerships and limited liability partnerships; and on construction, an implementation plan for actions to stimulate construction sector productivity will be delivered, including greater deployment of building information modelling. As a small open economy, we must never underestimate the importance of maintaining competitiveness and ensuring that the cost of doing business does not impede it.  In this regard, Future Jobs Ireland 2019 is an integral component of the Government’s overarching plan for the future of the Irish economy.

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